HORACE MANN EDUCATORS CORP DE

The following discussion provides forward-looking outlook information for our results of operations and capital position.

Consolidated Results

At the time of issuance of this Quarterly Report on Form 10-Q, we now estimate that 2024 full year core earnings will be within a range of $2.40 to $2.70 per diluted share. The decrease from the range discussed in our Outlook for 2024 in the Annual Report on Form 10-K for the year ended December 31, 2023, is primarily due to lower-than expected net investment income in the first half of the year, primarily from valuation adjustments to the company’s commercial mortgage loan funds. These results anticipate the following:

•8% to 9% increase in net premiums and contract charges earned driven by Property & Casualty rate actions

•Net investment income now estimated to be in the range of $440 million to $450 million, which includes approximately $105 million of accreted investment income on the deposit asset on reinsurance in the Life & Retirement segment

•Approximately 6% increase in total Operating expense

•Approximately $35 million in corporate Interest expense included in results for the Corporate & Other segment

Property & Casualty Segment

In 2024, net income for Property & Casualty is anticipated to be in the range of $36 million to $39 million. Our outlook anticipates:

•Combined ratio near 100%

•Catastrophe loss assumption is now anticipated to be approximately $90 million or around 12% of net earned premiums

We continue to anticipate achieving our longer-term Property & Casualty combined ratio target of 95-96% in 2025.

Life & Retirement Segment

In 2024, net income for Life & Retirement is now estimated to be in the range of $50 million to $56 million. Our outlook anticipates:

•Spread on the fixed annuity business in the range of 180 to 190 basis points, below the target range of 220 to 230 basis points

•Mortality modestly higher than 2023

Supplemental & Group Benefits Segment

In 2024, net income for Supplemental & Group Benefits is anticipated to be in the range of $49 million to $52 million reflecting strong first-half performance. Our outlook anticipates:

•Claims utilization for supplemental and disability products increasing slightly from the first half of the year, leading to a segment benefit ratio closer to longer-term target of 43%

•Pretax profit on revenue of between 21% and 22%

As described in Application of Critical Accounting Estimates, certain of our significant accounting measurements require the use of estimates and assumptions. As additional information becomes available, adjustments may be required. Those adjustments are charged or credited to net income for the period in which the adjustments are made and may impact actual results compared to our estimates above. Additionally, see forward-looking information in this Quarterly Report on Form 10-Q as well as Part I - Items 1 and 1A in our Annual Report on Form 10-K for the year ended December 31, 2023 concerning other important factors that could impact actual results. Our projections due not include a forecast of net investment gains (losses), which can vary substantially from one period to another and may have a significant impact on net income.